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Demand Peak
In economics, demand is the quantity of a good that consumers are willing and able to purchase at various prices during a given time. In economics "demand" for a commodity is not the same thing as "desire" for it. It refers to both the desire to purchase and the ability to pay for a commodity. Demand is always expressed in relation to a particular price and a particular time period since demand is a flow concept. Flow is any variable which is expressed per unit of time. Demand thus does not refer to a single isolated purchase, but a continuous flow of purchases. Factors influencing demand The factors that influence the decisions of household (individual consumers) to purchase a commodity are known as the determinants of demand. Some important determinants of demand are: The price of the commodity: Most important determinant of the demand for a commodity is the price of the commodity itself. Normally there is an inverse relationship between the price of the commodity and its qu ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Economics
Economics () is a behavioral science that studies the Production (economics), production, distribution (economics), distribution, and Consumption (economics), consumption of goods and services. Economics focuses on the behaviour and interactions of Agent (economics), economic agents and how economy, economies work. Microeconomics analyses what is viewed as basic elements within economy, economies, including individual agents and market (economics), markets, their interactions, and the outcomes of interactions. Individual agents may include, for example, households, firms, buyers, and sellers. Macroeconomics analyses economies as systems where production, distribution, consumption, savings, and Expenditure, investment expenditure interact; and the factors of production affecting them, such as: Labour (human activity), labour, Capital (economics), capital, Land (economics), land, and Entrepreneurship, enterprise, inflation, economic growth, and public policies that impact gloss ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Demand Reduction
Demand reduction refers to efforts aimed at reducing the public desire for illegal and illicit drugs. The drug policy is in contrast to the reduction of drug supply, but the two policies are often implemented together. Some discussions of demand reduction make a distinction between policies that address single issues (such as public "knowledge-of-harms") or are short-term interventions(in-school programs), and those that approach drug demand as a complex issue with multiple social risk factors. Some economists such as Milton Friedman argue that due to the law of supply and demand, reducing demand is the only effective way to reduce drug use long-term. It is questionable, however, whether demand reduction programs actually reduce demand. Implementation examples In September 2011, Canada implemented new color graphic depictions of the consequences of smoking, mandating that they cover 75% of the front and back of each carton, health information messages on the inside of the pac ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Supply (economics)
In economics, supply is the amount of a resource that firms, producers, labourers, providers of financial assets, or other economic agents are willing and able to provide to the marketplace or to an individual. Supply can be in produced goods, labour time, raw materials, or any other scarce or valuable object. Supply is often plotted graphically as a supply curve, with the price per unit on the vertical axis and quantity supplied as a function of price on the horizontal axis. This reversal of the usual position of the dependent variable and the independent variable is an unfortunate but standard convention. The supply curve can be either for an individual seller or for the market as a whole, adding up the quantity supplied by all sellers. The quantity supplied is for a particular time period (e.g., the tons of steel a firm would supply in a year), but the units and time are often omitted in theoretical presentations. In the goods market, supply is the amount of a product ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Planned Obsolescence
In economics and industrial design, planned obsolescence (also called built-in obsolescence or premature obsolescence) is the concept of policies planning or designing a good (economics), product with an artificially limited Product lifetime, useful life or a purposely frail design, so that it becomes obsolete after a certain predetermined period of time upon which it decrementally functions or suddenly ceases to function, or might be perceived as fashion, unfashionable. The rationale behind this strategy is to generate long-term sales volume by reducing the time between repeat purchases (referred to as "shortening the replacement cycle"). It is the deliberate shortening of the lifespan of a product to force people to purchase functional replacements. Planned obsolescence tends to work best when a producer has at least an oligopoly. Before introducing a planned obsolescence, the producer has to know that the customer is at least somewhat likely to buy a replacement from them in ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Law Of Supply
The law of supply is a fundamental principle of economic theory which states that, keeping other factors constant, an increase in sales price results in an increase in quantity supplied. In other words, there is a direct relationship between price and quantity: quantities respond in the same direction as price changes. This means that producers and manufacturers are willing to offer more of a product for sale on the market at higher prices, as increasing production is a way of increasing profits. In short, the law of supply is a positive relationship between quantity supplied and price, and is the reason for the upward slope of the supply curve. Some heterodox economists, such as Steve Keen and Dirk Ehnts, dispute the law of supply, arguing that the supply curve for mass-produced goods is often downward-sloping: as production increases, unit prices go down, and conversely, if demand is very low, unit prices go up. Definition A supply is a good or service that producers ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Production (economics)
Production is the process of combining various inputs, both material (such as metal, wood, glass, or plastics) and immaterial (such as plans, or knowledge) in order to create output. Ideally this output (economics), output will be a goods and services, good or service which has value (economics), value and contributes to the utility (economics), utility of individuals. The area of economics that focuses on production is called production theory, and it is closely related to the consumption (or consumer) theory of economics. The production process and output directly result from productively utilising the original inputs (or factors of production). Known as primary producer goods or services, land, labour, and capital are deemed the three fundamental factors of production. These primary inputs are not significantly altered in the output process, nor do they become a whole component in the product. Under classical economics, materials and energy are categorised as secondary factors a ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Price–performance Ratio
In economics, engineering, business management and marketing the price–performance ratio is often written as cost–performance, cost–benefit or capability/price (C/P), refers to a product's ability to deliver performance, of any sort, for its price. Generally speaking, products with a lower price/performance ratio are more desirable on demand curve, excluding other factors. Even though this term would seem to be a straightforward ratio, when price performance is improved, better, or increased, it actually refers to the performance divided by the price, in other words exactly the opposite ratio (i.e. an inverse ratio) to rank a product as having an increased price/performance. Examples Consumer and medical products According to futurist Raymond Kurzweil, products start out as highly ineffective and highly expensive. Gradually, products become more effective and cheaper until they are highly effective and almost free to buy. Some of the products that have followed this ex ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Law Of Demand
In microeconomics, the law of demand is a fundamental principle which states that there is an inverse relationship between price and quantity demanded. In other words, "conditional on ceteris paribus, all else being equal, as the price of a Goods, good increases (↑), quantity demanded will decrease (↓); conversely, as the price of a good decreases (↓), quantity demanded will increase (↑)". Alfred Marshall worded this as: "When we say that a person's demand for anything increases, we mean that he will buy more of it than he would before at the same price, and that he will buy as much of it as before at a higher price". The law of demand, however, only makes a qualitative statement in the sense that it describes the direction of change in the amount of quantity demanded but not the magnitude of change. The law of demand is represented by a graph called the demand curve, with quantity demanded on the x-axis and price on the y-axis. Demand curves are downward sloping by defin ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Derived Demand
In economics, derived demand is demand for a factor of production or intermediate good that occurs as a result of the demand for another intermediate or final good. In essence, the demand for, say, a factor of production by a firm is dependent on the demand by consumers for the product produced by the firm. The term was first introduced by Alfred Marshall in his '' Principles of Economics'' Marshall, Alfred. "Principles of Economics". London: Macmillan, 1890, pp. 381-93, 852-6. in 1890. Demand for all factors of production is considered as derived demand. This is similar to the concept of joint demand or complementary goods, the quantity consumed of one of them depending positively on the quantity of the other consumed. Example if any goods is in production process by demanding capital automatically speed of production will increase that is directly demand or derived demand. Examples Producers have a derived demand for employees. The employees themselves do not appear in the ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Demand-led Growth
Demand-led growth is the foundation of an economic theory claiming that an increase in aggregate demand will ultimately cause an increase in total output in the long run. This is based on a hypothetical sequence of events where an increase in demand will, in effect, stimulate an increase in supply (within resource limitations). This stands in opposition to the common neo-classical theory that demand follows supply, and consequently, that supply determines growth in the long run. The demand-centric theory is built on the foundation of work by thinkers such as John Maynard Keynes, Michał Kalecki, Petrus Verdoorn, and Nicholas Kaldor; and is expanded on through research by organizations like the ILO and the Levy Economics Institute of Bard College. Within the theory of demand-led growth, there exist two schools of thought. The first claims that an increase in wage share is the impetus for growth. A study by the ILO, to illustrate, concluded that higher wage shares correlate with ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Demand Curve
A demand curve is a graph depicting the inverse demand function, a relationship between the price of a certain commodity (the ''y''-axis) and the quantity of that commodity that is demanded at that price (the ''x''-axis). Demand curves can be used either for the price-quantity relationship for an individual consumer (an individual demand curve), or for all consumers in a particular market (a market demand curve). It is generally assumed that demand curves slope down, as shown in the adjacent image. This is because of the law of demand: for most goods, the quantity demanded falls if the price rises. Certain unusual situations do not follow this law. These include Veblen goods, Giffen goods, and speculative bubbles where buyers are attracted to a commodity if its price rises. Demand curves are used to estimate behaviour in competitive markets and are often combined with supply curves to find the equilibrium price (the price at which sellers together are willing to sell the ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Demand Chain
In business, a demand chain is the understanding and management of customer demand, in contrast to a supply chain. Madhani suggests that the demand chain "comprises all the demand processes necessary to understand, create, and stimulate customer demand".Madhani, P. M.Demand Chain Management: Enhancing Customer Value Proposition ''The European Business Review'', March–April 2013, pp. 50–54. Cranfield School of Management academic Martin Christopher has suggested that "ideally the supply chain should become a demand chain", explaining that ideally all product logistics and processing should occur "in response to a known customer requirement". Concept Analysing the firm's activities as a linked chain is a tried and tested way of revealing value creation opportunities. The business economist Michael Porter of Harvard Business School pioneered a value chain approach: "the value chain disaggregates the firm into its strategically relevant activities in order to understand the costs a ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
